Natural is a major
interstate transporter of natural gas and provider of natural gas storage services.With over 10,000 miles of pipelinesand over 280 billion cubic feet of working gas storage
capacity, Natural’s system transports gas from major United States and
Canadian producing areas to Midwest markets as well as other pipelines serving North
America.Natural offers firm and interruptible
transportation and storage services and also offers balancing service for managing supply portfolios.

Natural is a limited liability company, which is
owned by NGPL PipeCo LLC, a Delaware limited liability company. Kinder Morgan
Inc, a Kansas corporation, owns 100% of the stock of NGPL HoldCo Inc., which in
turn, owns 20% of the membership interests in NGPL PipeCo LLC, and operates
Natural. Myria Acquisition Inc. owns 80% of the membership interests in NGPL
PipeCo LLC.

(FFTS) Flexible
Firm Transportation
Rate Schedule FFTS is a variant of Rate Schedule FTS. Service under FFTS provides flexibility in
that parties can define limitations on when service is available. Under FFTS, Natural and the Shipper would agree
upon the minimum and maximum number of days during a period when Natural would be
obligated to provide service (“Available Days”). The FFTS agreement may specify that certain
days be pre-designated as days which would not be Available Days (i.e.,
weekends, holidays, etc.). Natural has
specific notification obligations in the event that a particular day is to be
declared a Non-Available Day. The FFTS
agreement may also specify whether Natural could implement a “Partial Available
Day”. A Shipper only pays for FFTS on days on which the service is an “Available
Day”. An FFTS Shipper may also elect the SW or NB options.

(DSS) Delivered
Firm Storage Service
Rate Schedule DSS is a no-notice delivered firm storage service, available in
the Market Delivery zone. Firm
withdrawal and injection rights are seasonally driven and vary throughout the
year. Additional rights may be made
available on an interruptible or firm basis as operationally feasible. To protect winter deliverability, the DSS
Customer must meet seasonal withdrawal shaping patterns and must cycle 50% of
its MSV (Maximum Storage Volume). Storage balances are divided by
leg with 50% available on the Amarillo system and up to 60%
available on the Gulf Coast system. The DSS Customer must have at least 95% of
its MSV in storage at some time between October 15th
and November 15th to maintain full withdrawal rights in the ensuing withdrawal
season. The imbedded firm transportation
component of DSS is available for use separately from the storage component from
October 15th through April 15th. The DSS
Customer must separately arrange with Natural and/or others as necessary for any
transportation for the delivery of gas to storage for injection. The DSS Customer may release the storage
component or the transportation component separately.

(FRSS) Firm Reverse
Storage Service
Rate Schedule
FRSS can be contracted for as a firm reverse delivered no-notice
summertime peaking service or as a firm reverse storage-only
service up to the Maximum Daily Quantity and Maximum Seasonal
Withdrawal Quantity utilizing Natural’s storage cushion gas. FRSS
customers replace gas withdrawn during the summer [withdrawal
period: May 15th – September 30th], back to storage between December
1st and the end of February [injection period]. FRSS can have a
Maximum Storage Volume equal to either 10 or 20 times the contract
MDQ. There are no withdrawal rights during the injection season and
there are no injection rights during the withdrawal season. Gas must be injected into
the same receipt zone storage pool as the delivery point, unless
mutually agreed otherwise. Shippers must
separately arrange for transportation to effectuate injections. An FRSS Shipper may release
the storage component or the transportation component separately. For shippers electing the storage only option of the service,
shipper may separately request firm no-notice deliveries through a separate designated transportation agreement.

(NSS) Nominated
Storage Service
Rate Schedule NSS is a
very flexible, firm, storage-only service. Firm Injection and
Withdrawal rights are based on inventory and do not vary by
season. Additional
rights may be made available on an interruptible or firm basis as
operationally feasible. NSS service must be nominated and transportation must be
contracted for separately. NSS may also be combined with FTS-NB or FFTS-NB to obtain
no-notice service. The
Storage Service is contracted by pipeline leg (Amarillo/Gulf Coast)
in any mutually agreeable ratio depending on capacity
availability. NSS has no requirements regarding cycling or minimum
inventory levels.

(BESS) Best Efforts
Storage Service
Rate Schedule BESS
provides an interruptible storage service that is available
in all zones. As the name implies, this storage service is provided
on a "best efforts"
basis.

(IBS) Interruptible
Balancing Services
Rate Schedule IBS
defines an interruptible imbalance management service for specified
end-use facilities. Natural provides this service through its line pack
capability. An IBS
Shipper must have and maintain in effect an FTS, FFTS or ITS
agreement to which the IBS agreement is linked. IBS service is designed to
help a Shipper accommodate differences between nominations and
physical gas flows to specified end-use facilities under the FTS,
FFTS or ITS agreement to which the IBS agreement is linked. IBS allows customers to swing their daily loads either up
and/or down, within the levels of the confirmed IBS swings without incurring
Balancing Service Charges.

(PALS) Park and
Loan Service
Rate Schedule PALS provides
an interruptible service for parking or loaning gas to meet
supply/demand requirements, to mitigate imbalances, or to capture arbitrage
value. This service is available in all zones and at any mutually agreeable
point.

(LPS) Line Pack Service
Rate Schedule LPS is an interruptible
service for parking and loaning gas that provides shippers
another tool for managing its overall supply portfolio of services
including taking advantage of pricing differentials. This service
allows a Shipper to nominate a quantity of gas to any mutually
agreeable receipt or delivery point on Natural’s system, to be held or
loaned by Natural for a specified period. A LPS Shipper is required to
use the same point to complete a specific transaction, unless
another point is agreed upon by Natural and the Shipper. Transportation must be
contracted for separately. LPS also provides shippers a mechanism for dealing with daily
imbalances through the Standing Request Order (SRO) program under
LPS. The availability of LPS is based on Natural's system operating conditions and
line pack, without reliance on storage. This service is available in
all zones and at any mutually agreeable point other than storage and
off-system points.